Tenet Healthcare Organizational Analysis Paper

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3 months ago

Tenet Healthcare Organizational Analysis Paper

Introduction

Tenet Healthcare Corporation is a healthcare organization in the United States. The organization offers healthcare services in different segments, such as United Surgical Partners International, the largest ambulatory services provider in the United States that operates more than 400 surgical hospitals and ambulatory surgery facilities. The organization also operates more than 50 specialty and acute care healthcare facilities and more than 100 outpatient healthcare facilities. The organization’s success is attributed to its talented workforce, including a network of physicians across the United States. This paper provides a detailed organizational analysis of Tenet Healthcare, including its business environment, organization assessment, and gaps in its performance. The paper also provides leadership recommendations that should be considered to improve Tenet Healthcare’s performance and leadership implications.

Part 1: Environmental Assessment

Political Factors	Economic Factors
· Government policies: The government controls the healthcare sector through various policies that could affect Tenet Healthcare’s operations. Typical policies include those regulating healthcare costs. · Taxation: Every for-profit organization is required to pay taxes. Taxation policies in the healthcare sector are favorable, thus increasing profit margins for Tenet Healthcare. · Government allocation of resources: The United States government provides resources to support the healthcare sector, making it easier for Tenet Healthcare to manage operations.	· Financial markets efficiency: Tenet Healthcare’s expansion relies on the ability to access rapidly growing financial markets and ease accessing liquidity in the United States equity market. · Economic Cycles: Tenet Healthcare’s performance is affected by the economic performance of the United States because it affects healthcare affordability. · Availability of vital infrastructure: The United States government has invested in improving infrastructure hence enabling Tenet Healthcare to reach patients in different regions and expand its operations across the United States.
Socio-Cultural Factors	Technological Factors
· Attitude towards health: Different communities have different attitudes towards health. Tenet Healthcare may face the challenge of introducing new healthcare practices in communities that rely on traditional medicine and are resistant to the use of technology in healthcare. · Demographics: The young population continues to increase in the United States, hence creating a need for Tenet Healthcare to adjust its healthcare provision practices to meet young people’s preferences, such as embracing telehealth to reduce doctor visits. · Gender Roles: Gender roles are rapidly changing in the United States, hence the need for Tenet Healthcare to adjust how tasks are assigned in the organization to accommodate gender roles.	· Application of technology in providing healthcare services: Tenet Healthcare needs to stay updated on the latest technology that can be used to improve healthcare services. · Patent protection and intellectual property rights: Tenet Healthcare’s research and development will be influenced by the United States’ regulation of patents and intellectual property ownership. · 5 G technology: Tenet Healthcare needs to constantly update its technology and internet connectivity for better speed and customer reach over the internet.

Part 2: Organizational Assessment

Category	Description
Mission	To offer quality, compassionate care in the community served by the organization and create an ethos of wellness, good health, and responsibility.
Vision	To consistently offer the proper care at the right time and in the right place and be a leading organization to work where saving lives and patient care remain the organization’s focus.
Values	· Integrity · Quality · Innovation · Service · People · Transparency
Culture	Accommodating culture
Strategic direction	To transition from slow growth, high cost, lower margin healthcare facilities into faster-growing, lower cost, higher-margin healthcare facilities specializing in ambulatory care.

Explanation

Tenet Healthcare’s mission is to offer quality, compassionate care in the community served by the organization and create an ethos of wellness, good health, and responsibility. Responsibility includes providing the highest quality of care to patients and being accountable for ensuring that patients’ needs are prioritized over profits. The organization’s vision is to consistently offer the proper care at the right time and in the right place and be a leading organization that works where saving lives and patient care remain the organization’s focus. This vision aligns with the organization’s values, including integrity, quality, innovation, service, people, and transparency. Quality focuses on making the right decisions and providing high-quality healthcare services. Integrity includes maintaining the highest ethical standards in providing healthcare services and being honest to patients and other shareholders. Service includes focusing on patients’ needs and collaborating to offer the highest quality of care. Transparency includes measuring the organization’s results and sharing them with all shareholders.

Innovation includes embracing new ideas to improve healthcare services and create new solutions for physicians, patients, and employees. The organization also invests in its employees by training them to equip them with the knowledge and skills required to serve customers. Tenet Healthcare has also maintained an accommodating culture where everyone feels valued and has a sense of belonging and where equality and respect are the foundation of every interaction. The strategic direction aims to improve the quality of healthcare services provided to patients across the United States by transitioning from slow-growth, high-cost, lower-margin healthcare facilities into faster-growing, lower-cost, higher-margin healthcare facilities specializing in ambulatory care.

Measurement of Performance Relative to Strategy

Category	Performance Indicator & Measurement	Target or Internal Benchmark	Explanation/References
Business Operations	Average patient wait time	Reduced patient wait time	According to Chan et al. (2010), average patient wait time includes tracking the average amount of time a patient must wait between checking in and seeing a healthcare provider. Reduced patient wait time is an indicator of improved business operations regarding proper scheduling and the availability of enough healthcare providers to attend to patients.
Finance	Revenue	High revenue	Zelman et al. (2020) argue that a healthcare organization should have enough incoming cash to cover expenses. Therefore, high revenue indicates good financial performance because there is enough cash to meet operational costs.
Customer	Cancellation rate	Reduced cancellation rate	A reduced cancellation rate indicates that customers are satisfied with the services they receive in the healthcare facility (Ng, 2020). High customer satisfaction translates to profit maximization.
Organizational Learning and Growth	Training per department	Reduced need for training and development programs	Reduced need for training and development programs indicates that employees have the knowledge and skills required to complete their assigned tasks. It also indicates that the organization has achieved the required level of growth.

Part 3: Gap Identification

Category	Performance Indicator & Measurement	Target or Internal Benchmark	Identify the Variance or Gap
Business Operations	Availability of enough qualified staff	Patient-healthcare provider ration	Tenet Healthcare eliminated more than 1000 employees while implementing its company-wide cost-reduction program (Bailey, 2022). It is currently outsourcing employees to reduce patient wait time and improve financial performance.
Finance	Reduced revenue	Ability to meet operational costs	Tenet Healthcare’s revenue reductions reduced its ability to meet operational costs, leading to the sale of some of its hospitals, such as the Philadelphia hospitals.
Customer	Customer complaints	Increased customer complaints	Tenet Healthcare’s limited number of qualified healthcare providers has increased patient wait time, leading to increased customer complaints and the organization’s inability to meet its revenue targets.
Organizational Learning and Growth	Poor revenue cycle management	Reduced value	According to Bailey (2022), Tenet Healthcare’s poor revenue cycle management has limited its ability to maximize Conifer’s values, thus adversely affecting its shareholders.

Part 4: Leadership Recommendation

Tenet Healthcare requires transformational leadership to close the desired versus actual organizational performance gaps. According to Shelton (2012), transformational leadership includes initiating change in the organization by encouraging employees to be more creative and innovative. Tenet Healthcare organization’s expected performance in business operations is being affected by the reduced availability of qualified healthcare providers. Therefore, leaders should invest in the human capital in the organization to equip them with the knowledge and skills required to handle various tasks in the organization. For instance, nurses can be trained on patient diagnosis to assist doctors in diagnosing patients and reducing patient wait time. The gap in revenue generation can be addressed by concentrating on the healthcare organization’s strengths to attract and maintain customers. For instance, the organization can focus on improving the quality of healthcare services provided to create a value proposition for its customers. According to Macfarlane (2014), quality of care plays a vital role in customer retention and creating a competitive advantage in the healthcare sector. Patients are willing to pay any amount of money for healthcare services as long as they are assured that they receive the best quality.

Tenet Healthcare should also consider creating a customer feedback platform where customers can freely express themselves and share their concerns about the healthcare services provided by the organization. Sparrow & Linney (2020) argue that customer engagement is vital in improving the quality of healthcare services because it enables healthcare providers to better understand their patients’ needs and preferences. The organization also needs to regularly track its revenue to ensure that the revenue cycle is adequately managed (Zelman et al., 2020). Proper revenue cycle management will also help the organization track its growth based on the changes in revenue.

Part 5: Leadership Implications

One of the critical success leadership competencies needed to achieve organizational outcomes is financial management skills. Tenet Healthcare’s leaders need financial skills to monitor the cash inflows and outflows in the organization for profit maximization. Another competency is strategic management. According to Greve (2021), strategic management plays a significant role in setting an organization’s strategic direction and aligning organizational culture to long-term and short-term goals. Therefore, an organizational leader needs to create a clear vision for the organization to shape strategic direction and assign tasks based on the organizational goals that need to be met. The leader also needs to set the code of conduct for employees through the organization’s policies and procedures to align organizational values and cultures and manage change.

References

Bailey, V. (2022). Tenet Healthcare Drops Revenue Cycle Management Subsidiary Spinoff. Revcycle Intelligence. https://revcycleintelligence.com/news/tenet-healthcare-drops-revenue-cycle-management-subsidiary-spinoff

Chan, T. C., Killeen, J. P., Vilke, G. M., Marshall, J. B., & Castillo, E. M. (2010). Effect of mandated nurse-patient ratios on patient wait time and care time in the emergency department. Academic Emergency Medicine, 17(5), 545-552. https://doi.org/10.1111/j.1553-2712.2010.00727.x

Greve, H. R. (2021). The organizational view of strategic management. Strategic Management, 43-60. https://doi.org/10.1093/oso/9780190090883.003.0003

Macfarlane, M. A. (2014). Sustainable competitive advantage for accountable care organizations. Journal of Healthcare Management, 59(4), 263-271. https://doi.org/10.1097/00115514-201407000-00006

Ng, S. (2020). Looking at the cancellation rate among renal patients and ways to reduce cancellation at the time of admission and improve utilization of the theatre list: A quality improvement project. Future Healthcare Journal, 7(Suppl 1), s61-s61. https://doi.org/10.7861/fhj.7.1.s61

Shelton, E. J. (2012). Transformational leadership: Trust, motivation and engagement. Trafford Publishing.

Sparrow, E., & Linney, M. (2020). RCPCH &Us: Improving healthcare through engagement. Embedding Young People’s Participation in Health Services, 105-130. https://doi.org/10.46692/9781447351214.006

Zelman, W. N., McCue, M. J., Glick, N. D., & Thomas, M. (2020). Financial management of health care organizations: An introduction to fundamental tools, concepts and applications. John Wiley & Sons.

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Question

Instructions
Conduct an organizational analysis for your selected organization. Incorporate each of the following parts and carefully read the requirements for each.

Tenet Healthcare Organizational Analysis Paper

Deliverables
Parts 1–3 of this five-part assessment will guide your recommendations in Part 4, and help determine what form of leadership is needed in Part 5.

Part 1: SWOT or PEST Analysis Table.
Use either the SWOT Analysis Template [DOC] or PEST Analysis Template [DOC] to build your table.
You may also find this SWOT Analysis Example helpful.
Part 2: Brief Organizational Assessment Narrative and Organizational Scorecard Table.
Use the Organizational Scorecard Template [DOC] to build your table.
Part 3: Brief Gap Analysis Narrative and Gap Analysis Table.
Use the Gap Analysis Template [DOC] to build your table.
Part 4: Executive Briefing Report.
Part 5: Brief Leadership Implications Narrative.
Part 1: Environmental Assessment
Related Scoring Guide Criteria

Analyze the environmental factors, including legal and regulatory ones, that affect the success of a healthcare organization.
Write coherently, concisely, logically, and with strong support from relevant professional resources, in an appropriate format, with correct grammar, usage, and mechanics as expected of a health care administration professional.
Conduct a brief environmental analysis using a tool such as SWOT or PEST and summarize your findings in table format. You may choose to do both a SWOT and a PEST (or other) analysis, but you are only required to do one. Include the impact of relevant legal and regulatory factors in your analysis.